ADVOKS GLOBAL · KENYA
Banking Act
4. Application for licence
Edition: 2024-12-27 · In force
4. Application for licence
(1)Every institution intending to transact banking business, financial business or the business of a mortgage finance company in Kenya shall, before commencing such business, apply in writing to the Central Bank for a licence.(3)The Central Bank shall, where it is satisfied as to the professional and moral suitability of persons proposed to manage or control the institution, certify that such persons are fit and proper persons to manage or control the institution.(4)For the purposes of this section, the criteria for assessing the professional or moral suitability of persons proposed to manage or control an institution shall be as prescribed in the First Schedule.(5)In considering an application for a licence, the Central Bank may require to be satisfied as to—(a)the financial condition and history of the institution;(b)the character of its management;(c)the professional and moral suitability of the persons proposed to manage or control the institution;(d)the adequacy of its capital structure and earning prospects;(e)the convenience and needs of the area to be served; and(f)the public interest which will be served by the granting of the licence.(6)The Cabinet Secretary may, by notice in the Gazette, amend the First Schedule.(7)If a person, other than the Government or a public entity, holds, directly or indirectly, or otherwise has a beneficial interest in, more than five percent of the share capital of an institution or if it is proposed that such a person shall so hold or have such a beneficial interest, that person shall be deemed, for the purpose of this section, to be a person proposed to manage or control the institution.